The reminder must be invested in fixed-interest securities and cash.

Given the behaviour of fixed-interest security prices over the period, this may reflect a desire to hold such stock mainly for its capital gain potential.

Fixed-interest securities would be immune at least to some of the difficulties that might affect companies' trading performance.

The adjusted current yield is a financial term used in reference to bonds and other fixed-interest securities.

Fourthly, since the return for holding a bill to redemption is known at the time of issue, bills are fixed-interest securities.

Both erode the value of existing fixed-interest securities.

In common with all fixed-interest securities, therefore, their price will change with any change in market or current interest rates.

However, there is another type of risk that is common to all types of fixed-interest securities and which has an important effect on bond values.

It also meant that financial institutions put less of their funds into gilt-edged stocks and, in consequence, were more ready to purchase other fixed-interest securities.

In finance, permanent interest bearing shares, or PIBS, are fixed-interest securities issued by building societies.

Essentially such investments were of two types: either in fixed-interest securities, mainly Government stocks, or in stocks and shares of public companies on the Stock Exchange.

In retrospect, the buoyancy of equities relative to fixed-interest securities seems less a reflection of any positive preference or near-inflationary consideration than a mere short-term readjustment of the converse position.

This was due both to periods of heavy issues of stock, usually in connection with war finance, and to the fact that the UK, unlike many other countries, experienced neither political revolutions accompanied by debt repudiation nor bouts of hyper-inflation which destroyed the real value of fixed-interest securities.